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tv   [untitled]    April 9, 2013 3:30pm-4:00pm EDT

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of course then you look at the headline from the exact same week. c.e.o. crosspiece sitting on twenty five million pound pension pot former chief executive james crosby is entitle to a seven hundred thousand pounds annual pension from his time at the company it would cost twenty five million pounds to buy a pension of that size a u.k. parliamentary commission on friday criticised crosby and two other former boss executives for sowing destruction at the mortgage lender and called for them to be banned from working in the financial sector but while there's no deterrent for committing arson in the financial sector this guy phil pot he's going to be of course you know brought before a court and facing justice in some way for killing people but for crosby there's no justice because here in the u.k. and around the world if you steal money using bank fraud and securities fraud like crosby's does or like the leaders of barclays h.s.b.c. lloyds and world bank of scotland commit securities fraud every single day of every
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single week there's no deterrent there's no societal pressure not to commit massive fraud there's no penalty there's no reason not to moral hazard you know this idea that well if you let a bank commit fraud or just continue to commit fraud that's out the window we now have serialised sanctioned banker financial hooliganism that is resulting in people like philpott phil potts you get a job running it just b.c. don't put him in jail put phil pot the guy killed his kids and burn to the death how he should be running barclays he should be running back bank of england not mark carney mark carney is just a supposed talking money printer put philpott he knows how to burn people alive put in this bank of england you frickin morons george osborne so here we have to a man responsible for awful crime of killing his children so let's see how their friends and family and people around them justify their behavior understand what it's going to summer thousand pounds a year bonus and
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a pension plan phil pot he proved himself to be an arsonist a murderer. george osborne this is your man run bank of england this is you're going to be the chancellor of the exchequer phil but so phil potts lawyer says man behind darby fire a very good father a man who killed a six children in the house fire was a very good father who never meant to harm them his lawyer said so with this argument that he was a good father and he just you know accidently killed the six children i want to turn to how people use that excuse for bankers and the banking sector and central banks and we look around us and we see a financial system in utter collapse and bringing quite a lot of grief to people around the world and see how this excuse is applied to bankers everywhere so a tweet from c m b c's john carney says there was a big twitter fight between stacy herbert and is a kaminski but i have no idea what it was about well i'm going to tell you what it was about but first i want to get. our money i got a book. so i want to tell you how first isabella kaminski responded to this tweet
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by john carney and she said correction i wasn't arguing was being bombarded by accusations based on misrepresented interpretation of my piece we get along so we're going to look at what her own words were that i responded to and the title of her article by isabella kaminski in the financial times you can look this up yourself was when memory becomes money the story of bitcoin so far now she starts off a piece saying that it's worth mentioning that bitcoin was first popularised in the murky underground universe of silk road so it's just these illegal drug dealers and takers and users and abusers who are the ones that popularized bitcoin and then she says it's also those gold bugs those weird gold bugs and speculators to have an interest in inflexible markets that they don't want flexibility of
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a currency and then she says. that said it's understandable why the darker elements in society might feel threatened by an economic system that's trending towards a more equitable distribution of wealth by means of government controlled system the threat is heightened further when governments are doing their best to counter the hoarding wealth in concentrated pockets by means of dilution through processes such as quantitative easing so she saying. that quantitative easing is lessening income inequality and wealth inequality right any picture a twitter war with her and you then you pummeled her because for a few obvious points that she is misstating one being that quantitative easing has done something other than increase this incredible disparity in the in the in the society between the have yachts and the have nots the concentration of wealth because of quantitative easing has become overwhelmingly concentrated at the very
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tip of the tip of the very tippy top now the financial times of course faces an existential threat from bitcoin as does this woman's career as a journalist as do all journalists to don't accept bitcoin as the cyber christ who is here to save the economy and people from the misreporting of financial times and the economist magazine and bloomberg and c. and b. c. who are all aligned with the devil the bitcoin emergence will put an end to that it's now two billion in market cap we mention a million dollar big coin a few weeks ago it's great to be a big coin millionaire well now it's great to be a bit coin millionaire times for i did send her tweet i didn't engage in a fight i was just curious to know does she really genuinely believe that the purpose of quantitative easing that it was the best efforts of the central banks to s. she say that they were doing their best to counter the hoarding of wealth were they
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really really interested in that she responded with these three tweets. q.e. is about wanting to die loot and distribute take from savers who are profiting in deflation disproportionately and lessen the burden on debtors who are proportionately having more pain the problem is the banks get in the way of the mechanics banks are blocking the process quantitative easing is forced the flay sion on savers you could say in that manner in other words in the united kingdom two hundred twenty billion pounds of savings of capital has been forced from savers to the city of london to be used for purposes of speculation so in cyprus they just took people's bank accounts and m.f. global they just took people's bank accounts here in the u.k. they've already stolen two hundred twenty billion pounds of people's wealth to give it to the city of wall street to speculate that's a forced deflation it's not reacting to in deflation this is the primary objection
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i have with this lunatic crackpots tweet is that she believes that the central bank is somehow reacting to deflation no no the central bank is causing d. flays shin in the capital accounts of those who are supplying this economy which is supposed to be free market capitalism with capital you can't have capitalism without capital so why is the central bank stealing the capital from people who have it that could supply what's needed to grow the economy why because they're like fill pot full pot pot you are our sisterhood it's just go back to the beginning my show played again drops a massive blade a third time smoke a joint played a fourth time you must embrace what's happening here big cooling does reduce it well again she had said that it is more flexible so better stability a better sort of value and fair allocation all around and that these banks it was the banks who were responsible for blocking the process of redistributing all of
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this quantitative easing abuse. knucklehead of what the role of the banks are in this equation quantitative easing means that the bank of england is telegraphing that they're going to be buying billions of pounds worth of guilt in the market banks simply front run those purchases they just get in further those purchases they do it through a repro market so that there are in fact my putting up any capital at all they're borrowing capital at ten basis points to capture a one and have two two and a half percent interest on those bonds they are being rewarded to borrow as much money as possible at that rate that's almost zero that's being created by zero interest rates or zero interest rate policies again she's absolutely wrong why is the f g a flyer this woman because you look like a jackass ok you just know anything about anything but she says that it's helping the debtors and this is a very important because they're being unfairly penalized so let's look at the
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biggest debtor in the world who is the u.s. government and i saw a tweet from convert bond laurence macdonald he's a former junk bond trader from lehman brothers member bank that famously collapse september fifteenth two thousand and eight took down the whole global system with it he writes u.s. government interest cost and debt are three hundred sixty billion dollars lowest since two thousand and six despite total debt moving from eight point five trillion to sixteen point eight trillion in that period so quantitative easing first of all the banks are blocking the process they're lending it to the government they're just not lending it to joe baca doenitz out there on the street they're lending to the government is that any more secure is this helping anything by the our governments being twice as in debt now as they were at the beginning of this process you're saying that we need to help the debtors that gate debt ing if you're debt ing above and beyond the capacity of the economy and in your debt the whole like then the worst thing that can be done is to give the debtor more debt to
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exercise their demon. deta hall it is a. you want to actually take the debtors off the debt method down and you want to reward savers the way to turn this british economy around would be to jack interest rates up to five percent immediately get rid of all the deadwood yeah the market would go through a transition but you get rid of all the deadwood the bad actors you make room for entrepreneurial ism you make room for growth but i was born in carney are just going to keep rewarding the methadone clinic of dental hall ism and the austerity measures are going to continue and it could be more arsenic more dead kids more blood on board hands thanks osborne for telling those kids with your ridiculous policy all right stacy never got to go but listen thanks so much for being on the kaiser report thank you max all right stay tuned for the second half i'll be speaking with reggie middleton about dodgy dealings of irish banks.
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international airport in the very heart of moscow. welcome back to the kaiser report i'm max keiser time now to turn to reggie middleton of boom bust blog dot com reggie welcome back to the kaiser report thank you very much good to be back all right reggie arouse an explosive new report talking about some of the financial ground zero as you call it the fraud at the
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highest levels of a iby in ireland talk about it. well i was always skeptical of the irish banks their problems are very similar sort of problems you have in of us banks basically they gave a lot of loans didn't underwrite them very carefully to accurately against over or price to overvalue collateral their collateral reduced in value ok but the loans state and basically when you have assets that drop and it remains the same is equity that's the way and that's the problem with these banks as well as the other banks ok now it's already let me jump in and ask you this in other words if i if i'm understanding you correctly the the irish banking system we were told was bailed out one hundred percent of the bondholders holders were made whole the state took on one hundred percent of all the liability the troika points to ireland as the poster child of everything that can go right with their prescriptions are you
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telling me that the irish banking system is about to get another huge bailout and collapse i have no idea if they're going to bail out but you know the collapse of looks like it's going to happen if it doesn't happen you know it looks like there may be some prestidigitation you know some harry potter style magic but the problem is they're ok now i went over the initial problem of course that will build out once. again then they had a troika injection because the government possibly didn't have enough money to bail them out another time but after going through the papers and going through the records. that will file and both with the regulatory bodies in ireland and america with as you see in the actual paperwork charges that were given to the. offices in ireland you see a lot of discrepancies one very big discrepancy was the actual charge charge is
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very similar to a mortgage. in the u.s. where they give their say in exchange for financing and they pledge their collaterals the collateral to the person that they got the loan from or the and see that they got the loan from the actual paper that was filed with the irish office says that all of the each and every security eligible security is covered under this charge now in their annual report it states that certain securities will cover the charge now there's only a very minor difference from your perspective but from a media perspective it's an awful lot now it appears that a few of the late a lot of people have a problem understanding the difference so i'm going give a very visual understanding here we have american notes right punch of money ok now you have a person who says they have a claim on certain of these notes and then you have another person who says i was
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on each and every one of these notes now which one of these would be the more variable create certain of these notes each and every. right absolutely and this is basically the issue would be and they be saying to the public that there's a cream one certain but the actual document that the file says there's a cream on each of the notes right so as we've seen throughout this entire that we hope you know understand as we've seen throughout this entire crisis there's always come back to a question of the value of the collateral the collateral that people are using to buttress all of these re financing schemes and bailouts game itself is not worth the paper that it's not printed on so here you have a i'd be about to crash again now the irish taxpayer own a i be so is the irish population about to get cyprus in other words is there going
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to be a bill in now in ireland where they're going to ask depositors to contribute they're just going to take money. a trend we saw with m.f. global we saw in cyprus we're going to see it now in ireland reggie that depends on if the troika is really in the troika and germany et al are truly willing to foot the bill for a full belly up color beilin but you know it's basically a bailout discuss what happened in cyprus and what very well may happen in ireland you have several there was a capital structure in a bank you have depositors on the bottom and depositors most of the think of those investors they think of themselves as someone who have built themselves over banks services for very very low risk storage of the capital ok and then you have higher on the hierarchy and c.e.o. bondholders ok who assume risk voluntarily and exchange for materially higher return than a depositors and then above them you have the equity stake holders who assume even
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more risk for presumably higher returns ok now i believe you should wipe out all investors who assume risk you know if a bank goes bust because basically what you're getting in return for the risk of going bust or the potential for doing well deposit is a slightly different story now you do assume or so you put your money in the bank ok but you assume a very a modicum. of risk ok if you wipe out depositors' you basically destroy the banking system because the banks basically all made up of the positives there is the largest funding base that is the most liquid funding base and it should be the scarce it's funding base for some reason i think a lot of the mindset in ireland is we have no choice but to put our money in banks if there's even the slightest chance of you losing any principle at all is it worth point seven percent return on your money or one percent one point two percent or
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three percent you know a lot of people in cyprus who are getting four four and a half five to six. percent it was worth losing sixty percent of the capital right i mean in ireland it is an interesting situation because of course the banks are backstopped now by the troika which includes the i.m.f. the e.c.b. and the e.u. and what you're saying and what now people understand is that for example the i.m.f. is in self bankrupt the e.u. is bankrupt the e.c.b. european central bank is insolvent it's back it's bankrupt so people need to understand that these banks that are putting their money in our are backed by banks that are in turn bankrupt a bank of international settlements which collateralized all the central banks is insolvent so that's something people need it wrap their minds around of course the governments and the state owned media outlets like r.t. in ireland have failed to carry that message and tell the truth to the population so there are culpable in an act of financial terrorism that's without doubt but the people of arlon feel as though it's their moral obligation to help bail out these
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banks is that true or we will find out because i don't believe it's pressure cyprus is a template i don't believe that the e.c.b. an i.m.f. a good deal of the banks i believe that the guise of the checking savings accounts are going to build the banks if cyprus is a template and i truly do believe that either cyprus is a template or you're going to have a lot of political ramifications when germany's s. to foot a bill as well as the rest of the e.c. the e.u. the i.m.f. etc. this can't go on for too long i have a whole list of banks you know i listed anglo-irish i listed irish but i have a whole list of banks to review each and every one of them have play significant games or bust from a purely fundamental perspective and you know the real i see it and i could be wrong of course you know i have been wrong in one thousand nine hundred. but the way i see it each and every one of these are going to need
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a bill out if you look at them from a fundamental perspective ok so just to recap your call is that irish banks that have already crashed. and needed a bailout are in a position now as we've said on this show now for several years and as i told people in ireland myself personally these banks are going to crash again and require yet another huge response which could be like cyprus where they just take the money directly out of your account and i want to ask you about the connection between the troika it is. as part of the bailout they didn't want to avoid a credit event that would trigger the credit default swap mechanism from coming into play so how much pressure did the u.s. and the american bankers apply to the i.m.f. to hide the fact when they went through the initial crash that this was all about preserving wealth on wall street and absolutely nothing to do with the people in ireland if i was a fly on the wall i would assume that fly would have heard that the u.s. was basically calling the shots you know if you take
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a look at the association that determines credit events ok that association is made up of or that panel is made up of some of the biggest c.d.s. writers you know in the world so that's going to a fox and ask him his opinion of where the ticket should be so for dinner. ok fair enough let me let me ask you let me expand on that a little bit what kind of blowback are we going to see in the u.s. if any and what banks might be involved that's interesting because if you can if you can misrepresentation i don't know i'm not a lawyer i'm different a lawyer and also you know the tick is the good advice but as a layperson is common sense perspective if you could prove misrepresentation do c.d.'s get paid off or is this a different you know venue and in addition. several banks several banks are proven to be significant under-capitalized or materially over the over ok what happens in even of c.d.'s or written off there's not enough capital in the system
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none of the system the paid off you know if i'm not mistaken when i was going to show before my pain over c.d.'s we have five people in the room ok one of them had some money and everybody else was borrow money from them in a circle ok and they were insuring this person insuring their partners i insured b.b. insurance the scene sure is the issue is the ecos back to mature as me when it was take a significant loss you just have down those four right ok and there's just not enough capital not enough money to pay for if this was a porno film that scene would be called the daisy chain yes it would move on to post cyprus what about spain italy france one of the signs that years savings in these countries are about to be stolen by the troika and these other clowns i will get to them you know and it's actually a lot of work a lot of time there's that many banks are in trouble but i could tell you this much
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. the money if you consider to be stolen will probably be stolen by those who ran the banks into the ground and then expect to be recapitalized versus driven out of business ok now there is a sense where you can say is justified that those who put their money in the banks will lose their money if they put their money in the bad bank but then you have to reexamine the entire system and what a bank is ok is the common deposit it is the common grandmother who puts the money into a sitter for the possible demand a puzzler savings account she expected to be a credit analysis that credit analysts i'm sorry problem is interest rates are too low ok you put your money into a bank you're getting in the u.s. you getting point zero seven and so a point seven percent return maybe one percent return ok if there's any risk their rates have to be much higher there's no way in the world to avoid higher rates when people realize that there are significant risk in their banks even
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a small medical risk rates have to go up there just not enough food to go around. to give a risky investment to somebody to take a risky investment to do so my risky investment and return give them a return zero point seven percent is just not enough food to go around it may be a lot but not enough to support a global system of this size it is now all right reggie middleton we're out of time thanks so much for being on the kaiser report you're very welcome it's good to be back it's good to be on a truly independent show all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacey i reckon with my guest reggie middleton of the block it's like the same e-mail please do so at kaiser report of r t t v are you saying.
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you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought you don't know i'm tom harpur welcome to the big picture.
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live live . live live. live live. thanks.
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live live. live . goodson meteorite oh. ten thirty sometimes totalled through space towards russia.
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to meet with the power. of a nuclear bomb. to the open sky full auto at sea. he is eve eve eve two feet.

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